How are bonds taxed?
- What's a bond?
- How much money can I make on a bond?
- How do bond returns compare with stock returns?
- What are the advantages of bonds for retirement?
- What are the risks in bonds?
- What are TIPs?
- Which bonds are good for a retirement portfolio?
- How should I buy bonds?
- Should I buy short-term or long-term bonds?
- How much of my portfolio should be in bonds?
- How are bonds taxed?
Bonds generate income which may be taxable. Interest on corporate bonds is taxable, but some government bonds may be exempt from certain taxes. For example, Treasurys are free from state and local taxes, but you will owe federal taxes. Munis, on the other hand, are federal-tax free and may be exempt from state and local taxes if you live in the state that issued them. You can also make your portfolio more tax efficient by taking advantage of certain retirement accounts. For details and tax-saving strategies, see Investing and taxes. 
